Morning business news - October 17Thursday 17 October 2013 10.35
MARKETS WELCOME NEWS ON US DEADLINE DEAL - US shares were higher after news on the Senate deal to avert the debt crisis overnight. The Dow Jones Industrial Average, Nasdaq, and S&P 500 all closed up by more than 1%. In Tokyo this morning, shares hit a three-week high. In general though stock markets did not react as dramatically during the shutdown as they had during previous budget disputes.
Peter O'Flanagan, from Clear Currency, says the market reaction seen last night and this morning is as expected and comes after the complacency of the markets over the last few weeks to the situation in the US. Mr O'Flanagan says he believes legacy issues remain despite a deal being reached, and more pressure will be felt by the Obama administration in January and February when the new deadlines approach. He predicts continued fluctuation in the currency markets with a weaker dollar expected by the end of the year.
SMURFIT BUSINESS SCHOOL HOSTS GLOBAL IMMERSION WEEK - UCD Blackrock, or the Smurfit Business School, is hosting a digital immersion week for MBA students from high profile colleges like Yale, IE in Spain, and IMD in Switzerland. The initiative is about understanding opportunities in the sector and devising strategies for them.
Laurent Muzellec, the director of the programme at the UCD Smurfit Business School, says that Dublin is the Digital Capital of Europe as it hosts the European headquarters of all the major technology companies. The purpose of the week is to help participants to understand consumer behaviour changes, digital marketing communications opportunities and digital business models and strategies. He says that technology and behaviours are evolving all the time and the programme includes strategy and practitioner input. The programme includes company visits and guest speakers, including the chief executive of Hubspot Brian Halligan.
Mr Muzellec says he is confident that students will be "work place ready" when they leave the Smurfit Business School as the courses there receive a lot of managerial and practitioner insight, including the top executives of the likes of LinkedIn and Google coming into the lecture rooms to tell students about their companies.
MORNING BRIEFS - The World Bank and the International Monetary Fund have reacted to the news on the US Senate deal to avert the debt crisis. The World Bank said it was good news for developing countries and the world's poor. Its statement said the global economy dodged a potential catastrophe. The IMF's Christine Lagarde said they had taken an important and necessary step which would enable the US government to continue its operations without disruption for the next few months while budget negotiations continue to unfold. US shares were higher after news the debt default was averted.
*** IBM has reported a 4% drop in sales in the three months to September - lower than analysts had been expecting. The world's biggest technology services firm has not reported a rise in quarterly sales since the end of 2011. IBM's computer hardware division had a particularly weak quarter with a 17% fall in sales. Shares in IBM fell 6% in after hours trading.
*** Online auction and retail giant eBay also delivered a lower-than-expected sales and profit forecast for its fourth quarter. It blamed slowing growth in online shopping rates in the US, and said it expects sales of between $4.5 billion and $4.6 billion for the Christmas period. Shares in the company fell as much as 5% on the news in extended US trading. Ebay said it was seeing weaker economic conditions in the US.